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CHALICE MINING LIMITED Capital/Financing Update 2011

May 19, 2011

64649_rns_2011-05-19_74f30b08-c748-478a-bf22-8d53c5c6381e.pdf

Capital/Financing Update

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MARKET RELEASE

20 May 2011

Chalice Gold Mines Limited

TRADING HALT

The securities of Chalice Gold Mines Limited (the "Company") will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Tuesday, 24 May 2011 or when the announcement is released to the market.

Security Code: CHN

of Heiner

Jill Hewitt Senior Adviser Listings (Perth)

CHALICE GOLD MINES UMITED Level 2, 1292 Hoy Street West Perth, Western Australia 6005 GPO Box 2890 Parih, Western Australia 6001 ABN 47 116 648 956 Phone: +618 9322 3960 FON. +61 8 9322 5600 Erveil [email protected]

www.cholicegoid.com

Web.

20 May 2011

Mr Mauro Paccini Australian Securities Exchange Exchange Plaza 2 The Esplanade Perth WA 6000

Dear Mr Piccini

Chalice Gold Mines Limited requests a trading halt in its securities pending the release of an announcement in relation to details of a capital raising.

We anticipate making an announcement prior to commencement of trading on Tuesday 24 May 2011,

We are not aware of any reason why the trading halt should not be granted.

Regards

l/Husker

RICHARD HACKER CFO & Company Secretary